Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 28 August 2014

Mentha-Oil Menthaoil settled up 0.27% at 694.2 supported by improving demand from consuming industries in the spot market. Further, lower arrivals from Chandausi in Uttar Pradesh, too supported mentha oil prices uptrend. At Chandausi market sources reported arrivals at 7 Drums(1-drum-180kg), lower by 3 Drums(1-drum-180kg) from previous trading day. At Sambhal market total arrivals are at 70 Drums(1-drum=180kg), steady as against previous day’s arrival. At Bareilly market sources reported arrivals at 5 Drums(1-drum-180kg), down by 1 Drums(1-drum-180kg) from previous day’s arrivals. At Barabanki market total arrivals are at 280 Drums(1-drum-180kg), steady as against previous day’s arrival. At Rampur market sources reported arrivals at 20 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Traders mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. Technically market is under fresh buying as market has witnessed gain in open interest by 0.63% to settled at 8776 while prices up 1.9 rupee, now Menthaoil is getting support at 691.8 and below same could see a test of 689.5 level, And resistance is now likely to be seen at 697, a move above could see prices testing 699.9.